Vol: 1, Issue: 2 2011

Page: 01-06

The Roles of Management Control Systems to Implement Strategic Change: The Case of Industrial Service Operations

Arun Shrivastawa

A number of authors have investigated the actual use and the related benefit of interactive control system in strategy emergence, strategy implementation, innovation, organizational learning, and company performance (e.g. Obsorn, 1998; Abernethy, 1999; Bisbe and Otley, 2004; Davila, 2000). However, some drawbacks have also been identified. Simons (1995, 2000) points out that without due care, participants in the interactive control process may feel threatened by the active interest and participation of senior managers; hence the threat of embarrassment can ruin learning. And such involvement requires the important investment (both in cost and time). Simons (1987) proposed the top management “not to usurp the decision rights of subordinates.